Introduction
In the midst of a drop in revenue, indie game publisher tinyBuild has reported a swing to a pretax loss for the first half of the year. Despite this setback, the company remains focused on expanding its IP ownership while creating long-term scalable franchises across multiple media formats.
Financial Performance
For the six months ending on June 30, tinyBuild experienced a pretax loss of $31.7 million, compared to a profit of $6.8 million during the same period last year. This shift was primarily attributed to an accounting impairment of development costs.
Revenue also declined by 19% to $23.3 million from $28.75 million, mainly due to a sharp decrease in development service revenues and underperformance of the "Versus Evil" videogame.
Moreover, the adjusted loss before interest, taxes, depreciation, and amortization—considered a preferred metric by the company—amounted to $1.2 million, in contrast to a profit of $9.9 million. This was primarily caused by a lower proportion of revenue from first-party titles and higher development cost amortization.
Near-Term Challenges
tinyBuild acknowledges that its near-term growth potential is somewhat hindered by the current weak macroeconomic environment, geopolitical instability, and shifts in industry dynamics.
Despite these challenges, the company remains committed to its goal of expanding IP ownership and building long-term scalable franchises.
